New Possibilities

Things seem to be getting better for Pakistan as reports of Samsung considering setting up an assembly plant in the country, according to our Minister for Industries and Productions, Hammad Azhar spells good news for the economy. To have one of the most successful conglomerates set up business in our backyard presents diverse prospects for positive growth within the country.

When meeting with the executives from the multi-billion-dollar tech giant, two particular government policies were appreciated and cited as the main reason why such an initiative was being taken—the Device Identification, Registration and Blocking System (DIRBS) and Mobile Device Manufacturing. DIRBS helped empower local producers by eliminating the smuggling of smartphones. As a result, each phone purchased or used was registered formally. Complimenting this protocol, the Mobile Device Manufacturing policies encouraged localisation through joint ventures as well as direct investments. This helped in reducing the average price of a smartphone. With increased regulation, as well security in production and distribution, courtesy of state measures, Pakistan has effectively become an attractive place for international MNCs looking to invest and expand.

Having Samsung’s assembly plant in the nation would improve the productive capacity, as well as the development, of the economy. This is done when the company provides an inflow of capital to create infrastructure that, in turn, contributes positively to the balance of payments. Not only are new jobs, possibly in the thousands, created for the local community but the worker skillset is improved. The government is forced to adhere to the MNC’s international standard, thereby creating new infrastructure for the area. Lastly, having an added value product being assembled in the country would allow for the economy to diversify, eradicating the volatility that comes with reliance on primary goods.

There is no doubt that a company like Samsung can do wonders for the country by attracting more foreign interest and enhancing overall output. Now, it is up to us to seize opportunities as they come.

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